9.5.2009 The Treasury Department announced the issuance of several Internal Revenue Service (IRS) rulings and notices and other initiatives intended, as stated in Treasury’s press release, “to make it easier for working families to save, particularly for retirement.” Although none of the items breaks significant new ground, the various pieces of guidance provide helpful clarifications and updates in several areas. The initiatives include:
- A ruling and notices providing guidance on 401(k) and SIMPLE IRA automatic enrollment and automatic contribution increase arrangements (Rev. Rul. 2009-30, Notice 2009-65, Notice 2009-66, and Notice 2009-67);
- Rulings describing how unused vacation pay and pay for other leave can be contributed to a 401(k) plan (Rev. Rul. 2009-31 and Rev. Rul. 2009-32);
- A notice providing a new model Internal Revenue Code § 402(f) notice on rollover opportunities and tax rules following termination of employment (Notice 2009-68);
- Enhancements to the IRS Web site directed at plan participants and sponsors;
- A new program allowing tax refunds to be directed to purchase U.S. Savings Bonds; and
- A reiteration of the Obama Administration’s legislative proposals regarding automatic contribution IRAs and the expansion of the saver’s credit.
Click http://sutherland-news.com/ve/ZZ610029998931xuWe87/stype=dload/OID=109991521816/VT=0 to access a Sutherland legal alert on the rulings and notices.